NLG: Receiving vnd 500 billion from IFC, and profiting VND 350 billion profit from Paragon Dai Phuoc transfer

According to the plan, International Finance Corporation (IFC), a member of the World Bank will disburse the remaining VND 500 billion to Nam Long in 2022.

Nam Long Investment Joint Stock Company (HOSE: NLG) not only showed positive business results but also demonstrated a safe financial position and positive sales in projects.

Regarding business activities, in the first 9 months of 2022, NLG recorded total revenue and gross profit of VND 2,710 billion and VND 1,170 billion, respectively, 3.4 times and 5 times higher than the same period in 2021.

Of which, the major revenue comes from the handover of projects, particularly, VND 759 billion from Flora Akari; VND 1,389 billion from Valora Southgate; VND 263 billion from Ehome Southgate; and VND 134 billion from Flora Novia.

Revenue and gross profit of NLG

Source: NLG

Healthy financial health

In regard to the financial situation, NLG's total assets as of September 30, 2022 was VND 25,526 billion, 8% higher compared to the beginning of the year. Inventories increased slightly by 4%, to more than VND 16,105 billion.

Short-term prepayments from buyers totaled VND 3,837 billion, 56% higher than the beginning of the year. This is the amount paid in advance to purchase the group's properties and will be recorded as revenue when the project is handed over.

NLG's short-term and long-term loans as of the end of Q3/2022 were equivalent to VND 4,596 billion, while the amount of cash and cash equivalents recorded reached VND 4,179 billion. NLG's debt is still manageable as debt to equity ratio, after deducting cash and cash equivalents, is only 5%.

NLG's debt maturity roadmap to 2029

Source: NLG

The increase in long-term debt mainly comes from VND 500 billion of bonds issued to the International Finance Corporation (IFC), a member of the World Bank, and a loan of VND 482 billion mobilized to develop Izumi City (DNWF) and Paragon Dai Phuoc.

According to the partnership agreement, IFC will purchase VND 1,000 billion worth of bonds issued by NLG. The bond has a maximum term of 7 years, the collateral includes NLG's shares in the subsidiary Nam Long VCD and the joint venture NNH Mizuki. The annual fixed interest rate is 9.35%. The company pays interest every 6 months and the principal is divided equally into 3 payment periods every 3rd, 5th and 7th years.

NLG shares that the proceeds will be used for Waterpoint phase 2, an integrated township project in Long An, including green public spaces, sports facilities, schools, universities, medical facilities, as well as transportation, retail and office buildings. IFC is expected to disburse the remaining VND 500 billion to NLG in 2022.

Since 2018, Nam Long has succeeded 5 bond issuances with a total value of VND 2,610 billion. All issuances comply with current regulations, capital plans and have been publicly disclosed.

NLG's bonds have medium and long-term maturities, combined fixed and adjustable interest rates at the low end in the industry. NLG said that the Company has no intention to buy back the issued bonds before maturity.

NLG's bond issuances since 2018

Source: NLG

Sales revenue totaled VND 10 thousands billion 

NLG's pre-sales are also looking positive with the total sales as of September 2022 recorded at VND 10,000 billion, 40% higher compared to the total sales in 2021 and doubled the same period last year. Of which, VND 1,929 billion from Izumi City, VND 2,813 billion from Mizuki Park, VND 2,859 billion from Akari City and VND 2,205 billion from Southgate.

Source: NLG

In November, NLG will open sale the Central Park subdivision of the Waterpoint mega project, estimating sales at VND 700 billion. In December, the company will open sale Phase 2C of the Izumi City project with estimated sales of about VND 750 billion.

Also in late 2022, NLG will transfer 50% of shares in Paragon Dai Phuoc project to Japanese partner Nishi Nippon Railroad and some other strategic partners. Revenue from the transfer is projected at about VND 1,300 billion, after-tax profit is VND 350 billion.

Source: Vietstock.vn